We believe that auctions are potentially the most exciting and progressive way to buy and sell goods and services.
But what is the biggest concern when it comes to auctions? Usually, it’s the seller’s ability to achieve the highest possible price and I am often asked, ‘how do you know that an auction will perform better than any other mechanism?’
It’s a good question and the answer is simple – logic. We can tell by using what we call Auction Logic, whether or not a better selling mechanism is available. We look at a variety of factors, to give us an understanding of the logical variables which govern an auction and its participants at any given time.
In practice, Auction logic means running an individual scenario through a given formula, to the point where we can provide measured, mathematical proof of the predicted outcome for different types of auction. This approach establishes ‘auction facts’ to feed into the auction formula through taking the basis variables and then applying experience to identify the precise variables which have an effect.
We may not be able to state precise outcomes, but we can certainly determine that the result will have a more positive effect than another selling mechanism. Not surprisingly, Auction Logic, this mathematical and logical approach to predicting auction variables, is being widely welcomed by Perfect Channel’s customers across all markets.
It is particularly well received in the financial sector, where the ability to predict results, via logical, automated responses, is increasingly valued and in tune with their requirements. Gone are the days of high risk, intuitive decision making. These days, the financial sector wants logic and evidence.
So what will the application of Auction Logic ultimately produce? Getting it right means that we identify the Perfect Price, in other words, the optimum price for something that meets both demand and supply.
We can’t always know every variable, but we can identify the main pressure points and working with partners with relevant business knowledge, we can identify the significant factors which we can leverage to deliver Perfect Pricing.
The capabilities that auctions offer businesses are relatively untapped. In the future, this combination of logic and design really will help businesses unlock potential and identify Perfect Pricing in every market.